Sources are telling me that Terry Pegula has won the bidding for the Buffalo Bills for about $1.2 billion, a record price paid for a professional football team. The deal could be officially announced today by , the banker conducting the sale for the trust of the team's late founder, Ralph Wilson.

There are lots of rumors that the true enterprise value (equity plus net debt) is in the $900s. Recall that when the Houston Texans expansion team was bought by Robert McNair the "announced" expansion price was $700 million. But in fact the true purchase price (enterprise value) was about $600 million because McNair had an agreement with the NFL to pay the league most of the money in five years at zero interest, lowering the cost to McNair by about $100 million depending on the exact discount rate used.

Either way, the owner of the NHL's Buffalo Sabres beat out a Toronto Group and Donald Trump.

Last month we valued the Bills at $935 million, 31 out of the league's 32 teams. The Bills posted revenue and operating income of $252 million and $38 million, respectively, in 2013.

The most recent NFL team to be sold were the Cleveland Browns, who were purchased by Pilot Flying J CEO James Haslam for $987 million two years ago. The highest price paid for an NFL team previously was $1.1 billion for the Miami Dolphins by Stephen Ross. The real estate mogul bought 95% of the team and its stadium in a two-part deal from Wayne Huizenga; $550 million for 50% ownership in 2008 and the remainder the following year.

The 63 year old Pegula, who made his fortune in oil and gas, has a net worth of $3.3 billion.